Sony could break even on PS3 in '09, finally get agressive with pricing

Back in January, Sony Computer Entertainment president Kaz Hirai told Reuters that he'd very much like the company to turn a profit on PlayStation 3 in early 2009. Going by a new report on the actual manufacturing costs of the system, Hirai may get his wish.

BusinessWeek reports that the PS3 – which cost Sony a whopping $840 to produce in 2006 – has, through a reduction in parts and cost thereof, reached a price of $445 assembled. Sony was losing more than $200 per system sold back in the fall of '06 ... and it has now gotten that figure down to about $45. This was achievable by scaling back its inner-workings from 4,048 parts then to 2,820 today (losing backwards compatibility with PS2 games along the way). Also, the system's Cell processor, which cost Sony $89 at launch, is $46 now.

It's good news for Sony and its shareholders, who have been watching profits sink for some time. It's also good news for gamers; continued cost reduction on the hardware could spell a price drop on both SKUs by summer of 2009 – and potentially even more aggressive pricing this time next year. (Fun fact: although it might seem like the retail price of PS3 isn't dropping as fast as PS2, both systems dropped exactly $100 during their first 24 months on sale.)